I don't think a lot of people here are understanding the real balance implications of this. Wavedashing isn't even important compared to the new airdodging mechanic.
Mmac raised an excellent point with Yoshi's recovery being screwed. Ness gets screwed in a similar way. Screwing Ness and Yoshi sounds like what Brawl needs to me.
The very long landing animations make airdoding in the air ever hopelessly unsafe for some characters (Luigi and DK mostly). So if Meta Knight or Mr. Game & Watch or someone happens to be pursuing them in the air, they now have zero options to defend themselves.
Did you think Mr. Game & Watch's juggling with his up aerial was obnoxious before? Have fun with it now; it's 50x better. Airdodging through it was a really important option for some characters, and now that's really unsafe to try. In fact, Mr. Game & Watch might be able to keep someone like DK in the air forever. He'd definitely be a way better character, and he's already top tier...
Ice Climbers having wavedashing makes landing grabs with them much easier, and remember it's a lot more practical in brawl to do their infinites than in melee once you land that grab (wavedashing might even give them more variations!). Assuming the fixed version doesn't cause an auto-desynch, they are probably completely broken so you wil think Meta Knight and Captain Falcon in standard brawl are practically on the same tier.
I don't understand why people are saying this should be used in any competitive sense at all as long as you can lock the game trivially with R.O.B.. If you want to move past just messing around, that lock-up is obviously completely unacceptable (not that this should ever move past just messing around anyway).
Have a whole lot of fun dealing with Pit arrow spam in the air when airdodging isn't a viable evasive option. How are you actually supposed to recover past a really smart and really good at aiming Pit with this airdodge mechanic?
As per some other suggestions:
L-Canceling - Is landing lag really too long in brawl? Last I checked it wasn't especially longer than in melee. Cutting it in half would give birth to smash 64 style gameplay more than melee style gameplay; how do you plan to handle Meta Knight doing short hop L-cancel aerials? How about Luigi? Any aerial that already didn't have much landing lag and has a nice hitbox is going to be really stupid with this, and I see absolutely no reason to add in having to press L anyway. If you want to cut lag in half, just do it always and don't require the button push (having to push the button adds in a completely non-skill and is strictly inferior to not having to push it).
Removing the delay from ledge actions would just make ledgestalling better; do you want that? Fox, Falco, and Bowser had infinite ledgestalls in melee if you were frame perfect if you recall, and I'm pretty sure smart ledgestalling was far more dangerous than it ever got explored for. Brawl fixed it... and you want to break it again?
More hitstun is just going to make the top guys better. Meta Knight is the obvious case. How about Mr. Game & Watch? Wouldn't it be so cool if the only way to escape the turtle -> turtle combo was smash DI and he could use air control and good spacing to chain them together in long series or to try to force you into a fishbowl? Maybe the Ice Climbers could exploit it to have an easier time landing grabs so they could be even more broken on top of the wavedashing? Wouldn't it be so much easier to camp with King Dedede if your random pokes kept them pinned down for longer? Some of the guys at the bottom would like this, but in general, it would favor the top.
"auto-sweetspotting" is really just brawl having more generous ledge detection which is a good thing. It was way easier for some characters to grab the ledge in melee than others, and it was pretty silly. It was especially bad if you tried to grab it without doing a B move like Jigglypuff usually liked to do; the detection area was stupidly small.
Brawl's balance really isn't bad, but the changes you people want would completely kill it. It's ridiculous how you get mad at anyone who speaks negatively of this, but they're just being realists and saying things that need to be said (if you can't see the myriad problems with using a hacked game in a tournament, you probably just aren't looking very hard).
That being said, this could be pretty fun for messing around. Codes that anyone could use to easily change the base damage, base knockback, and knockback scaling factor of arbitrary moves on top of a few other codes could be pretty cool in letting individuals use Ocarina to create their own fun "custom brawl" games. Of course, they'd have to understand that it's just not practical to try to move past the "just for fun" side of things.
I may not be the "competitive" brawler or melee'r, but maybe that helps my standpoint on this.
